Location: Richmond, VA | Metro: Richmond, VA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,700 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,770 | $278,732 | 0.64% | D |
| 2BR | $1,930 | $355,989 | 0.54% | F |
| 3BR | $2,380 | $678,780 | 0.35% | F |
| 4BR | $2,920 | $989,683 | 0.3% | F |
| 5BR | $3,387 | $1,838,924 | 0.18% | F |
U.S. Census Bureau data (2024)
The ZIP code 23221 is situated in a desirable part of Richmond, Virginia, characterized by a diverse mix of residential areas. With a total population of 14,402, it has a significant rental market, with 48.1% of residents being renters. The median household income in this area is strong at $99,816, reflecting a middle-class community capable of supporting various housing needs. Median home values are notably high at $644,361, indicating a robust real estate market and potential for property appreciation.
Turning to the economics of renting in 23221, the Fair Market Rent (FMR) set for the zip code for fiscal year 2024 is $1,780, while the market rent as measured by Zillow's ZORI index stands at $1,721. This suggests that properties in this area can command rents slightly above the market average, which is beneficial for investors looking to maximize returns. However, the proximity of these figures also means that there is limited room for significant rent increases without potentially pricing out tenants.
Given these factors, ZIP 23221 could be an appealing location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable income derived from Section 8 vouchers can provide a reliable cash flow, especially in a neighborhood where the majority of residents are already renters and the income levels support government assistance programs. On the other hand, for hands-on investors, the opportunity to enhance property values through renovations and improvements can lead to higher rents and increased equity over time. The high median home value suggests that such investments could yield substantial returns if executed well.
In conclusion, ZIP 23221 offers a balanced environment for real estate investment, combining the stability of a Section 8 portfolio with the potential for growth through active management. Investors should consider their risk tolerance and investment strategy before deciding whether to adopt a passive or active approach in this promising Richmond neighborhood.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.